Wednesday, September 10, 2014

Mr. Naveen has stuck with
his home loan process when he came to know that the seller is having a home
loan on the property and he is not having the funds to pre close it. As Mr.
Naveen many customers don’t know how to resolve this situation and find
themselves in a dead end, but banks do have a product for those who buy
properties from owners with home loan already on the property and the product
is termed as “vendor liability” or “seller home loan balance transfer”

The process is same as
like a normal home loan where the applicants submits the personal, income and
property documents along with additional documents like vendor loan account
statement, outstanding letter and List of documents deposited in the bank. The
process will be done by verifying the personal and income details of the
applicants. The panel advocates verify the legality of the property by
scrutinizing the documents and by verifying the details in sub registrar
offices.

Once all the verifications
are positive banks start the process of disbursing the loan by collecting
checks and signatures on home loan agreement. Banks first disburse the
outstanding loan amount of the previous bank in which the seller is having a
home loan. Banks gives the owner the complete responsibility to bring the
original documents back and register the property to the purchaser. Once the
property is registered in the name of the purchaser the remaining loan amount
will be disbursed to the seller.

The process of Seller home
loan balance transfer is same as like a normal home loan balance transfer with
one small difference i.e the process gets completed in 15 days where in normal
home loan BT gets completed in week days of time. Banks offer same home loan interest rates for seller balance transfer cases as of a normal home loan and these home loans are also covered for Income Tax benefit Under Section 80(c) of Income Tax Act.